Purchasing land for a new home requires a lot of decision-making and research. It’s important to take into consideration every aspect of the land before purchasing. Here are 4 things we considered when purchasing our residential lot for the Grandview project:
- Capitalization & Hookup fees
Capitalization Fees or “cap fees” may be required when hooking up to infrastructure items like sewer or water. While searching for land in a well-developed neighborhood, we identified two great properties. We found that the sewer cap fee had already been paid ($7,500) on one of the properties which influenced our final purchase. We also took into consideration the cost of utilities. All utilities are available at the lot, so we called each utility to confirm the hookup fees to avoid any surprises.
- Easements & Setbacks
Our local building department let us know that the lot had two setbacks in the front, a minimum and a maximum. The maximum setback was to protect the view for the houses on the street above. The easements from the city and the utility did not have an impact on our decision. The city has a drainage easement and the utility for power, cable and telephone.
- Neighborhood & Location
We wanted land with a view and close to town. We had the chance to talk to the neighbors before purchasing, which ended up giving us insight into the neighborhood, what others have encountered during the building process and who they used to build their homes.
- Building Code Requirements and CC&Rs
One of the neighbors mentioned that an owner of a newly purchased lot nearby was frustrated when they learned that the local building code requirements stated a driveway could not exceed a 12-degree slope when they submitted their site plan. To avoid surprises, we called the building department and then read the building requirements outlined by the county. Further, we also reviewed the homeowner association CC&Rs for specific building requirements above and beyond the county.
Comment with additional considerations when buying land and your experiences.